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The Pakistan Credit Rating Agency Limited
Press Release

Date
27-Sep-18

Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA places Asset Manager Rating of First Capital Investments Limited on Rating Watch

Rating Type Asset Manager
Current
(27-Sep-18)
Previous
(15-May-17)
Action Maintain Maintain
AM Rating AM4++ AM4++
Outlook Developing Stable
Rating Watch Yes -

786 Investments Limited (Formerly: Dawood Capital Management Limited) has shown interest in acquiring the only mutual fund (First Capital Mutual Fund) of First Capital Investments Limited. The legal process has been initiated. First Capital Investments Ltd is waiting for the relevant regulatory approvals (particularly from SECP). Notably, both parties intend to conclude the transaction in a timely manner.

Noting the expected change in ownership and related acquisition process, PACRA has placed the ratings of First Capital Investments Limited on Rating Watch and would monitor the related developments. Rating would be reviewed once it is settled.

About the Entity
First Capital Investments Limited (FCIL) commenced operations in 1995. The company is sponsored by First Capital Securities Corporation Limited (FCSC) the holding company of First Capital group with 87% shareholding. Mr. Sulaiman Ahmed Said AlHoqani - An Omani Investor - holds a strategic stake of 9.2% in FCIL and major shareholding in FCSC. FCIL is currently managing one open-end, equity fund namely First Capital Mutual Fund (FCMF) with assets under management of PKR 208mln at end June-18.

The Board of Directors comprises four members, including the CEO. The remaining two
members including the chairman are independent. During the year, Syed Nadeem Hussain has been appointed as the new Chairman of the board. Mr. Imran Hafeez was appointed as the new CEO of FCIL in Sep16.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.